Uswitch reveals how price cap changes may pan out across Britain
North Wales and Merseyside to be hardest hit by energy price cap increase, facing potential £133 bill hike
Lowest regional increase likely in northern Scotland at £103 per year
As households around the country digest the news that Ofgem is increasing the level of the energy price cap by an average of £117 a year, the potential cost to household bills is revealed by Uswitch.com, the price comparison and switching service.
The cap applies to unit rates of gas and electricity, rather than bills and varies between regions due to the different costs of supplying energy around the country. Household bills will also vary depending on how much energy they use.
The highest regional change is set to be in north Wales and Merseyside if energy suppliers raise their standard tariffs to the level of the new cap, with a potential average £133 increase on the cards.
However, regional variations mean that northern Scotland will experience the lowest increase on average, with the cap for medium energy users going up by £103.
The cap increase announced today takes effect from 1 April and will hit 11 million households on default, or “standard variable”, tariffs. On the same day, the cap on standard prepayment tariffs will also increase, by £106 on average to £1,242 per year. This will affect a further four million customers should all supplier price up to the new level.
The cumulative effect of both cap increases could add as much as £1.71 billion to energy bills.
Richard Neudegg, energy expert at Uswitch.com, says: “The energy price cap does not mean that energy customers on standard tariffs are getting a good deal. All the regions are going to be hit hard by this cap increase – but some more than others. This underlines just how important it is for consumers to check what they are paying and how they will be affected.
“Standard tariffs were a bad deal before the cap came in and they are still a bad deal now.
Households can also beat the price cap, avoid confusing price changes every six months and save hundreds of pounds a year by switching.”
FOR MORE INFORMATION
Tim Dunford
Phone: 020 3872 5612
Mobile: 07785 552666
Email: tim.dunford@uswitch.com
Twitter: @uswitchPR
Notes to editors
See table 1 in body of release, Uswitch analysis of low medium and high usage figures applied to Ofgem’s new regional price cap figures, correct as of 7 February 2019.
£117 x 11 million = £1,287,000,000 and £106 x 4 million = £424,000,000. £1.3 billion + £424 million = £1.71 billion
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